European stocks face weekly loss amid rising trade tensions
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European equities remained stable on Friday, yet the STOXX 600 Index was on track for a weekly decline of over 2%, pressured by escalating global trade tensions and economic slowdown fears. President Donald Trump’s threat to impose 200% tariffs on EU wine and alcohol, in retaliation for the bloc's levies on U.S. whiskey, added to market volatility, further unsettling investors.
The automotive sector was among the hardest hit, with BMW tumbling 3.7% after reporting a one-third drop in net profit for 2024 to €7.68 billion ($8.32 billion). Other carmakers followed suit, with Renault down 1.4%, Volkswagen sliding 1%, and Stellantis losing 1.2%, dragging the SXAP auto index lower by 1.3%.
Luxury and media stocks also faced headwinds. Universal Music Group (UMG) plunged 10.5% after Pershing Square cut its stake, while Kering slumped 9.5% as Gucci appointed Demna as its new artistic director, raising investor concerns over brand repositioning.
In contrast, Daimler Truck surged 4% after issuing a positive 2025 outlook, forecasting a 5%-15% rise in adjusted operating profit, alongside a European cost-cutting initiative.
As trade tensions intensify and sector-specific challenges mount, European markets remain vulnerable. The upcoming developments in U.S.-EU trade relations, alongside corporate earnings reports, will be key in determining whether equities can regain footing or extend their decline.
The automotive sector was among the hardest hit, with BMW tumbling 3.7% after reporting a one-third drop in net profit for 2024 to €7.68 billion ($8.32 billion). Other carmakers followed suit, with Renault down 1.4%, Volkswagen sliding 1%, and Stellantis losing 1.2%, dragging the SXAP auto index lower by 1.3%.
Luxury and media stocks also faced headwinds. Universal Music Group (UMG) plunged 10.5% after Pershing Square cut its stake, while Kering slumped 9.5% as Gucci appointed Demna as its new artistic director, raising investor concerns over brand repositioning.
In contrast, Daimler Truck surged 4% after issuing a positive 2025 outlook, forecasting a 5%-15% rise in adjusted operating profit, alongside a European cost-cutting initiative.
As trade tensions intensify and sector-specific challenges mount, European markets remain vulnerable. The upcoming developments in U.S.-EU trade relations, alongside corporate earnings reports, will be key in determining whether equities can regain footing or extend their decline.